New Home Sales Hit Record Low

CNN Money reports that new home sales hit a record low in last year, with just 302,000 new homes sold, 6.2 percent less than were sold in 2010. The low sales mark “a reversal of other recent housing market trends.” One industry analyst, however, noted that construction gains late in 2011 show that the new home market is picking up heading into 2012. Because every 100 homes built creates roughly 300 jobs, new home construction is a vital indicator of economic recovery. The construction equipment manufacturer Caterpillar reported that it expects “housing starts of at least 700 thousand units in 2012, up from 607 thousand units in 2011.”